Gold extends losses; silver dips below Rs 41,000 mark

Mumbai-India (May 18)  Falling for the second straight day, gold shed Rs 20 to Rs 29,800 per ten grams at the bullion market tracking a weak trend overseas amid easing demand from jewellers and retailers at domestic spot market.

Silver too faced selling pressure and broke below the Rs 41,000 mark by losing Rs 200 to Rs 40,900 per kg.

Bullion traders said sentiment remained bearish largely in tandem with a weak global trend where gold snapped three days of gains after strong inflation data that fuelled talk of an interest rate hike.

Globally, gold lost 0.4 per cent to USD 1,274.19 an ounce in Singapore.

They said fading demand from jewellers as well as retailers at domestic spot market at existing levels too weighed on the precious metal prices.

In the national capital, gold of 99.9 and 99.5 per cent purity declined by Rs 20 each to Rs 29,800 and Rs 29,650 per ten grams, respectively. The precious metal had lost Rs 230 yesterday.

Sovereign also traded lower by Rs 100 to Rs 23,200 per piece of eight grams on lack of buying support from retailers.

Following gold, silver ready fell further by Rs 200 to Rs 40,900 per kg and weekly-based delivery by Rs 145 to Rs 40,945 per kg.

Silver coins too plunged by Rs 1,000 to Rs 68,000 for buying and Rs 69,000 for selling of 100 pieces.

Source: TheHindu